Latest Stock Market News Today: Economy, Focus on US Debt Ceiling, P&G Rates Rising, WeWork Layoffs | January 19, 2023

Breaking news

The US hits the debt ceiling, creating new economic headwinds

Treasury Secretary Janet Yellen confirmed that the US debt ceiling had been reached, forcing the department to take “extraordinary measures” …

Breaking news

Stocks are falling as layoffs mount

US stocks fell for the second day in a row Job cuts in companies are increasing stoking concerns about the depth of the recession. WeWork has joined Amazon and Microsoft in announcing layoffs.

Procter & Gamble shares fell after executives remained cautious about inflation and the global economy during the consumer giant’s earnings call.

Procter & Gamble Company

$

144.16

Over the past five days, the Dow Jones is down about 3.48%, the S&P is down about 2.37%, and the technology-heavy Nasdaq is down about 1.34% over the same time.

In commodities, oil rose nearly 1% to the $80 per barrel level.

Layoffs indicate a recalibration of the labor market

Recent layoffs may signal a recalibration of the US labor market.

Manpower solutions company ManpowerGroup recently found in its latest employment outlook survey that industries With the strongest employment prospects In the United States for the first quarter of 2023 the information was TechniqueAnd Finance And Real estate.

For the first quarter, the US IT industry had “the strongest forecast for the industry worldwide,” coming in at +52%, according to the survey. Employers in the finance and real estate sector have expressed their expectations of a 34% increase in the number of their employees.

Meanwhile, the three industries in the United States With the “weakest prospects” for employment were: telecom services; consumer goods and services; and transportation, logistics and automobiles, according to a ManpowerGroup survey.

The Treasury takes special measures to prevent defaults

The federal government officially reached its $31.38 trillion debt limit on Thursday, prompting the Treasury department To start using its “extraordinary measures” to avoid defaulting on the national debt for the next few months.

Treasury Secretary Janet Yellen She announced in a letter to Congress last week that the United States will reach the debt limit on January 19th and that her agency will have to publish two of the four extraordinary measures available to it to continue paying the debt and avoid default.

Procter & Gamble, Netflix’s earnings headline Thursday

The financial earnings stream continues Thursday with Comerica, Fifth Third Bancorp, KCorp, M&T Bank and Northern Trust reporting reports ahead of the opening bell.

Consumer goods giant and Dow member Procter & Gamble Fourth quarter results will also be published.

In the afternoon, the lights will switch to Netflix. The streaming giant is the first of the big consumer/tech giants to come out with October and December results.

Analysts surveyed by Refinitiv expect earnings per share to fall 66% to $0.45 as a result of a 2% jump in revenue to $7.85 billion.

The biggest focus will be on subscriber numbers, as always. Analysts expect net subscribers to increase to 4.568 million Above Netflix’s own expectations 4.5 million.

Unemployment Claims, New Homes and Major Economic Data

The Labor Department will tell us how many new unemployment claims were filed last week. The forecast is 214,000, up from 205,000 in the previous week, the lowest since September.

Continuous claims that follow Total number of workers Unemployment claims, collected, are expected to rise to 1.66 million after declining the past two weeks.

The Commerce Department is expected to say the number of new homes under construction in December fell nearly 5% to a seasonally adjusted annual rate of 1.359 million. This would be the lowest since June 2020 as rapidly rising mortgage rates and rising prices continued to dampen housing demand.

Building permits in the future, a good measure of upcoming residential activity, It is expected to rise 1.4% to 1.37 million in December.

The report follows a surprising jump in the NAHB Housing Market Index this month, although it remains at a low level. On Friday, keep an eye on existing home sales for the month of December.

The Philadelphia Fed came out with an index of manufacturing activity for eastern Pennsylvania, southern New Jersey, and Delaware. It is expected to rise to -11.0 in January, remaining in contraction for the fifth month.

The president of United Airlines has a warning for travelers

One CEO of an airline Travelers warn That other carriers will not be able to handle all the flights they plan to operate this year.

United Airlines President Scott Kirby It said airlines operating as if this were 2019, before the pandemic, are bound to struggle.

According to Kirby, the industry suffers from a shortage of pilots and other workers, outdated technology and pressure on the FAA.

Oil fell more than 1% on bearish US data

Oil futures fell as much as $1 on Thursday on recession fears as a sharp decline in US retail sales and industrial production soured the demand outlook.

US West Texas Intermediate (WTI) Trading crude oil futures contracts It fell 1.1% to $78.00 a barrel.

Brent crude futures were trading around $83.00 a barrel.

US Retail Sales for December It fell by more in a year, putting consumer spending and the overall economy on a weaker growth path.

Manufacturing in the US also fell more than expected in December.

The American Petroleum Institute showed that US crude oil inventories rose by about 7.6 million barrels last week, according to Reuters.

Gasoline prices continue to rise

The nationwide price of a gallon of gasoline rose Thursday to $3.79, according to AAA.

average price a gallon of gasoline On Wednesday it was $3,359.

A year ago, the price of a gallon of regular gasoline was $3,316.

A week ago, the price of a gallon of gasoline was $3,272. A month ago, the same gallon of gasoline cost $3,142.

Gas hit an all-time high of $5,016 on June 14.

Diesel gained, but stayed Down from $5.00 per gallon to $4,612, but that’s still far from last year’s $3,633.

Microsoft’s job cuts include video game producers

Microsoft cuts 10,000 jobs across the company and cuts Includes Xbox Studios.

According to Windows Central Newsletter, the cuts include several Xbox studios such as Bethesda Games Studios, The Coalition, and 343 Industries.

Overall Job loss at Microsoft They amount to less than 5% of the tech giant’s global workforce.

Global bond sales start to a record high

The bond market is off to a great start as the yields are said to have helped fuel an unprecedented boom in debt selling Governments and companies around the world with more than half a trillion dollars.

Global bonds rose 4.1% to start the year, according to Bloomberg.

Forecasts for investment-grade US bonds will return 10% this year after their worst performance in half a century in 2022.

That’s more than double their forecast for US junk debt, according to Bloomberg.

Musk criticizes the World Economic Forum

Billionaire Elon Musk He went after the annual gathering of economic, business and political leaders in a tweet. “The World Economic Forum is increasingly turning into an unelected world government that people neither asked nor wanted.”

Bitcoin, Ethereum, and Dogecoin cryptocurrency prices rose on Thursday

Bitcoin traded around $20,000, snapping a 14-day winning streak.

for the week, Bitcoin acquired 15%.

During the month, the cryptocurrency has gained more than 25%, but has fallen more than 50% in the past year.

Ethereum has been traded About $1,500, after gaining 9% in the last week.

Dogecoin was trading at 8 cents, after rising 3% last week.

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